GREENVILLE(12/05/2007)-East Carolina University Athletics Director
Terry Holland, in response to a recent audit report concerning the
employment of his relative, today gave a $25,000 check to the
university.

In an accompanying letter to Chancellor Steve Ballard, Holland wrote, "
There is no doubt that this incident has created a great deal of
embarrassment for ECU and for many good individuals who care about the
university and who also care about me."

Holland's statement continued: "It is not my desire to defend my
decision but I do believe our Pirate faithful has always depended on me
to be open and frank with them in good times and bad times, even though
there are many who disagree with me on specific issues. It has been
extremely frustrating to be in a position that does not allow that open
dialogue.

"Immediately after meeting with the auditors in September, in addition
to ending the employment agreement, I made a commitment to increase my
Circle of Excellence gift from $50,000 to $75,000 to insure that the
athletic department was not disadvantaged in any way by the agreement
that had just been terminated. I am enclosing a check for $25,000 to
ECU-instead of the Circle of Excellence-to fulfill that commitment."

Holland , who had arranged for tuition assistance and employment for a
relative through the Athletics Department, repaid the full amount of
both the financial assistance and wages to the university.

The non-athlete student, who began receiving the financial assistance
from the Athletics Department in the fall semester of 2006, and who
worked part-time for the department, had been awarded a total of
$16,639.19 for tuition, fees, books, room and board. Holland canceled
the award effective Sept. 30.

Ballard said, "Coach Holland has responded completely and appropriately
to all of my requests related to this issue of employment. Coach
Holland has been forthright and has over-complied with suggestions to
rectify the perception created by his decision.

"From the beginning, he has encouraged us to provide more information
to the media and the public than we can legally provide. Further, he
has my complete confidence as among the very best athletic directors in
the nation. East Carolina is fortunate to have him."

Bob Greczyn, chair of the ECU Board of Trustees, said he is pleased the
matter has been resolved.

"The ECU Board takes this issue seriously. By taking responsibility for
this situation and returning the funds, Terry Holland has completely
addressed the situation to our satisfaction," he said.

"The chancellor indicates that the auditor's recommendations will be
developed into policy, consistent with national best practices, to
ensure that future hiring and financial aid practices will be clear,"
the board chairman said.

Greczyn added, "Terry has my unequivocal support, and the full support
of the trustees, as athletics director of East Carolina University."

Ballard added, "I can assure everyone that the auditor's
recommendations are under development and will be consistent with
national best practices.

"This matter has been reviewed by the ECU Board of Trustees, and I
consider it to be concluded. Let's all work toward the great
opportunities in front of East Carolina University," he said.